| Thu 26 Jul 2007, 17:05 | | TEL - TEAL Exploration & Mining Inc - Resource Inc |
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TEL - TEAL Exploration & Mining Inc - Resource Increase And Infill Drilling
Confirms Geological Continuity At Teal`s Otjikoto Gold Project
TEAL Exploration & Mining Inc.
Corporate Access Number: 31403
ISIN: CA8781511099
(Incorporated in Yukon, Canada on 1 June 2005)
SA Company Registration Number: 2006/003229/10
JSE share code: TEL
JSE short name: TEAL
RESOURCE INCREASE AND INFILL DRILLING CONFIRMS GEOLOGICAL CONTINUITY AT TEAL`s
OTJIKOTO GOLD PROJECT
- Otjikoto`s Inferred gold resource increased from 1.30 million ounces to
1.76 million ounces following the identification of an additional 460,000
ounces of gold
- Further high grade zones of mineralization have been intersected
- Infill drilling confirms the geological continuity of the vein system
- Otjikoto pre-feasibility study update
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL") has
announced an increase in the Otjikoto Gold Project resource from 1.30 to 1.76
million ounces of gold, equating to 44 million tonnes grading 1.246g/t. This
addition of 460,000 ounces of gold is principally related to the intersection of
extensions, still open ended, to the vein system in the southern and eastern
areas of the deposit.
Recent results from boreholes TC23, TC40 and OT152 have confirmed high grade
zones of gold mineralization. TC23 returned 18.90m grading 3.05g/t gold, TC40
16.20m grading 9.54g/t gold and OT152 returned 13.50m at 6.46g/t gold.
TEAL management believes the exploration drilling will target further increases
of the Otjikoto resource over the medium term. This 35% increase in gold
resource represents an interim phase of geological modeling and ongoing drilling
of the deposit, where three drill rigs are operational, is expected to provide
improved resource categories for the shallower portions of the deposit.
The Otjikoto Gold Project is situated within TEAL`s 100% owned Otavi Exploration
Area, which totals 3,800km2 in north-central Namibia, where TEAL discovered,
vein-hosted, gold mineralization. The gold occurs as `free` and often coarse
gold within predominantly pyrrhotite-magnetite-pyrite-carbonate veins. The
project is located close to well developed infrastructure of road, rail,
electrical power, and communications.
Resource Increase
TEAL has recently completed geological modelling and geostatistical evaluation
from results obtained following ongoing drilling at Otjikoto. Results of the
resource estimation provide approximately 2.7Mt of oxide material with a grade
of 1.31g/t gold and 41Mt of sulphide material with a grade of 1.25g/t gold. The
current Inferred mineral resource estimate is approximately 44Mt at 1.246g/t
providing 1.76 million ounces of gold.
This estimation represents an increase of 460,000 ounces from the previous
estimate of 1.30 million ounces which was audited and supported by SRK
Consulting in February, 2007. The additional ounces have resulted from the
intersection of extensions to the mineralization to the eastern and southern
areas of the deposit. Further resource expansion has been related to the
identification and modelling of extensions to the "Bottom Zone" unit.
Table 1 below indicates the current Inferred mineral resource estimate:
Tonnes Au g/t M oz
OXIDE
Upper Zone 948,267 1.382 0.042
Lower Zone 1,778,638 1.274 0.073
Bottom Zone 8,594 0.933 0.0003
Total 2,735,499 1.310 0.115
SULPHIDE
Upper Zone 7,659,720 1.644 0.405
Lower Zone 23,854,000 1.139 0.874
Bottom Zone 9,729,625 1.177 0.368
Total 41,243,345 1.242 1.647
Total Oxide & 43,978,844 1.246 1.762
Sulphide
Higher Grade Infill and Expansion Drilling
Table 2 below indicates the results of boreholes TC23, TC40 and OT152.
TABLE 2: RECENT BOREHOLE RESULTS (Infill and Expansion Drilling Areas)
BOREHOLE Depth Depth Corrected Gold
LOCATION from to (m) width (m) g/t
(m)
7350N/4850E TC23* 112 133 18.90 3.05
Including 112 120 7.20 5.55
6850N/4750E TC40* 68 86 16.20 9.54
Including 75 86 9.90 15.28
6400N/4950E OT152 174 189 13.50 6.89
Including 176 183 6.30 13.81
* Infill drilling area
High grade delineation drilling area
Boreholes TC23 and TC40 confirm the identification of higher grade zones of
mineralization within the relatively shallow area of the deposit. On completion
of the infill program, TEAL anticipates that an improved understanding and
geological modeling of these higher grade zones of mineralization will be
possible.
Borehole OT152 (refer to Table 2) indicates the extension of previously
intersected zones of high grade mineralization in the south-western extensions
to the current resource. Borehole OT152 is located some 900m from the edge of
the phase 1 infill drilling program. The intersection represents the down plunge
continuation of high grade zones of mineralization that were previously
reported.
Pre-feasibility Study Update
The pre-feasibility team is advancing the Otjikoto study and various
consultancies have been engaged for the project. Current status of the study can
be summarized as follows:
Metallurgical: TEAL has completed 780m of diamond drilling for additional
metallurgical test work samples. The location of these boreholes has been
selected in an attempt to provide material representative of grade ranges and
mineralogical associations. The primary focus of the test work, being undertaken
by Mintek of South Africa, is to establish the optimum route for the pre-milling
concentration of the gold mineralization.
Geotechnical: SRK Consulting has been contracted to conduct an assessment of the
geotechnical aspects of the deposit, the work is expanding upon a previous study
completed in 2003.
Geohydrology: South African company, AGES, has been engaged to carry out ground
water investigations and modeling.
Mining and Engineering Assessment: Ukwazi from South Africa has been appointed
to carry out mining cost estimates, open pit design, pit optimization,
production scheduling and related engineering and infrastructure studies.
Mine Residue Disposal: Geotail has been appointed to assess the mine residue
disposal options, including the waste rock stock pile as well as the tailings
facility.
Environment and Social: A Namibian based consultant, A Speiser Environmental
Consultants, is providing the Environmental Impact Assessment, including a
social impact study.
Project Co-ordination: GRD Minproc is project managing the pre-feasibility
study, including process route optimization, as well as capital and operating
cost estimation.
TEAL anticipates the completion of the pre-feasibility study by early fourth
quarter 2007.
Mr. Paul van der Merwe, Pr. Sci. Nat., Mineral Resource Leader with African
Rainbow Minerals Limited is the "qualified person", as defined by the Canadian
National Instrument 43-101, responsible for preparing and verifying this
resource estimation. Mr. Claus Schlegel, Pr. Sci. Nat., TEAL`s Vice President:
Exploration and Business Development, is the "qualified person" for the content
of this press release in terms of National Instrument 43-101.
-ends-
NOTE:
TEAL is incorporated under the laws of the Yukon, Canada and its common shares
are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited ("JSE").
The common shares of the Company trade under the symbol "TL" on the TSX and
"TEL" on the JSE.
TEAL is a mineral development and exploration company with development projects
and exploration areas in Namibia, Zambia and the Democratic Republic of Congo
("DRC"). TEAL has a portfolio of base and precious metal development projects
and complementary exploration areas, and the Company continues to seek other
opportunities, mainly in southern and central Africa.
TEAL has targeted four specific projects: the Konkola North and Mwambashi copper
projects in Zambia; the Otjikoto Gold Project in Namibia; and the Kalumines
Copper-Cobalt Project in the DRC. TEAL also has interests in various other
mineral licence areas in Zambia and in Namibia on which the Company continues
drilling and other exploration activities.
ADDITIONAL TEAL INFORMATION CAN BE FOUND AT: www.tealmining.com
For further details contact:
Julian Gwillim (VP: Investor Relations and Corporate Development) on +27 82 4524
389 (SA); or julian@tealmining.com,
or
Rick Menell (President and CEO) on +27 82 450 2301; or rick@tealmining.com.
Thursday, July 26, 2007
Date: 26/07/2007 17:05:55 Produced by the JSE SENS Department.
